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Bond to leave Xstrata when merger done

Xstrata chairman John Bond has stepped down following a shareholder revolt against a proposed bonus scheme to retain executives after the company's merger with Glencore.

Shareholders of both the mining group and commodities giant on Tuesday overwhelmingly approved the creation of Glencore-Xstrata with the combined company boasting a forecast market capitalisation of around $A83 billion.

But following the extraordinary general assembly meeting in Zug, central Switzerland, came the shock resignation of Sir John, 70, who has been at the helm since May 2011.

The move follows investor rejection of his board's recommendation to award 70 Xstrata executives STG144 million in bonuses for staying on in their jobs for three years after the merger is settled.

"In light of shareholders' decision not to support the board's recommendation, I have informed the Xstrata plc board and Glencore's current chairman that, once the merger has completed ... I will step down," Sir John said in a statement.

Company insiders say the rejection of the bonus scheme, seen as an important element of the merger, increases risks associated with the combined entity.

Shareholders have welcomed a plan to appoint a new independent chairman from outside the company.